Below is a variable costing income statement for the Macaron Glass Company, a maker of bottles for the beverage industry. For the coming year, the company is considering hiring 2 additional sales representatives at $72,700 each for base salary. The company anticipates that each sales representative will generate $962,400 of incremental sales.

1 (increase/ decrease )

2, (should/ should not)

Problem 5-9 Below is a variable costing income statement for the Macaron Glass Company, a maker of bottles for the beverage industry. For the coming year, the company is considering hiring 2 additional sales representatives at $72,700 each for base salary. The company anticipates that each sales representative will generate $962,400 of incremental sales. Macaron Glass Company Income Statement For the Year Ending December 31, 2017 Sales $18,650,000 Less: Variable cost of goods sold Variable selling expense $7,646,500 4,103,000 11,749,500 Contribution margirn Less: 6,900,500 Fixed production expense Fixed selling expense Fixed administrative expense 2,782,000 1,951,500 3,284,500 8,018,000 $-1,117,500 Net income Calculate the impact on profit of the proposed hiring decision. by $ Profit Should the company hire the 2 additional sales representatives? Company hire the 2 additional sales representatives